The key driver for asset value in the self-storage space is EBITDA or Net Operating Income. Every $1 in increased Net Income monthly increases the value of a facility by approximately $200.00. If you could invest capital to enhance value, where should you spend it? Here are the three investments that provide the generally largest bang for the buck!
1. Technology Upgrades
In 2026, technology is the primary driver of operational efficiency and customer convenience.
- Management Software: This is the most vital technological investment, serving as the operational hub for billing, gate access, and reporting.
- Automation: Implementing online leasing and payment systems allows for a “staff-less” move-in process, drastically reducing labor costs while meeting modern consumer demands.
- Dynamic Pricing: Utilizing software that automatically adjusts rental rates based on demand and local competition optimizes revenue in real-time.
- Remote Management Tools: Integrating IVR payments and remote call centers can accelerate a facility’s path to profitability.
2. Marketing Strategies
Effective marketing is essential for maintaining high occupancy rates, which typically aim for 88–90% in stabilized facilities. If you are at 100% occupancy, you may consider implementing more aggressive rate increases; if you are below 80%, you may want to be more aggressive in attracting new tenants. Here are some of the best investments in marketing.
- Digital Presence: A professional website optimized for SEO and managed Google Business Profiles are mandatory for local visibility.
- Targeted Paid Ads: Using Google and Facebook ads to target specific local demographics, such as apartment dwellers who are frequent storage users.
- Referral & Loyalty Programs: Offering incentives for current tenants to refer new customers helps maintain low-cost acquisition channels.
- Local Partnerships: Collaborating with moving companies and real estate agents creates a steady stream of “4Ds” leads (Death, Divorce, Downsizing, Dislocation).
3. Facility Improvements
Physical upgrades transition an underperforming asset into a “Class A” facility, justifying higher rental rates.
- Security Infrastructure: High-quality surveillance, gated access with keypad entry, and individual unit alarms are now standard expectations that protect the investment.
- Add Units/Space: Many facilities have excess or under-utilized space. Adding parking for RV’s/boats and/or adding portable storage units can add significant income without a huge investment.
- Aesthetic & Structural Upgrades: Replacing aging doors, repaving lots, and updating the office (if applicable) prevents deferred maintenance from becoming a capital burden.
- Curb Appeal: Modern designs featuring glass and greenery can attract premium customers who view storage as a lifestyle extension rather than just “extra space”.
- Climate Control Conversion: Converting traditional units to climate-controlled spaces can increase NOI by up to 25% and significantly compress cap rates, boosting overall valuation.
Enhancing your facility’s value will require some effort, but in the end, it will pay off handsomely. One alternative for the independent operator is to hire a professional 3rd party manager (3PM) to do the heavy lifting for you.
Have questions? Need resources? Don’t hesitate to reach out, I’m always happy to help!
About the author: Tom de Jong is an Executive Vice President with Colliers International and a founding member of the “de Jong Self Storage Team I COLLIERS” one of the top brokerage teams in the self-storage industry. To discuss this article or to find out what your assets are worth today connect with Tom de Jong.
